New UK Online Gaming Regulations Confirmed

taxes in gold letters

Those who were waiting for a confirmation regarding the introduction of new online gaming regulations have some reasons to… rejoice.

As PokerFuse reports the UK Chancellor of the Exchequer George Osborne made it crystal clear that the new law will produce effects starting on December 1st. The reason for why the joy is only partial has to do with the potentially negative effect that such a change in regulation might produce.

There are many who fear that the introduction of the Gaming Duty Point of Consumption, commonly referred to as POC will have a deterring effect on honest operators

What the critics fear, is that when confronted with this new tax, many of these companies will seek greener pastures elsewhere. Furthermore, if the online gaming companies try to offset their losses by spiking the rake or any commissions they charge, they could alienate players. If the latter choose to take their business somewhere else and play at offshore poker rooms for example, everyone will lose.

At the time of writing, there are plenty of unresolved questions and the ones that demand an answer have to do with the Treasury’s attitude towards the reduction of the initial rate. Initially, it was thought that the number will revolve around 15% but so far no additional information has surfaced. The project enjoyed the undivided attention of specialists for many months and the 108 pages report in the “Other HMRC taxes” section generated massive arguments.

The House of Lords was consulted about the UK Gambling Licensing and Advertising bill and gave a favourable verdict. Those who are directly interested know that the POC and the aforesaid bill are indissolubly linked and they are going to bring significant changes to the industry starting on December 1st. The operators are going to be subject to a tax of 15% that will apply to their gross profit, which will at best hurt their profit margin.

[SOURCE]